factors that affect internal supply chain integration dissertation proposal ana l. rosado feger...
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Factors that affect internal supply chain integration
Dissertation Proposal
Ana L. Rosado Feger
Clemson University
Motivation
• Competition based on Supply Chain vs. Supply Chain
• Supply chain management is a source of competitive advantage.
• Sustainable competitive advantage results from managing linkages. (Porter 1985)
Motivation
• Much has been written about the benefits of supply chain integration (external and internal), but there are few studies examining how firms can achieve it.
• This research project will develop a model of the factors that affect integration of three key SC departments.
Why Internal Integration?
• The strength of a chain is limited by the strength of its weakest link.
• Understanding the supply chain begins with understanding internal processes.
• An integrated firm presents a united front to customers, suppliers, and competitors.
• Process view is the customer’s view.
Key Internal SC Processes
• Purchasing, Operations, and Logistics are responsible for delivering the product to the customer.
• Purchasing: – Gatekeeper for process inputs
• Operations:– Transforms raw materials into final product
• Logistics:– Responsible for physical transfer and delivery
Research Question
• What factors affect the integration of the three focal departments?
• How are these factors interrelated?
• What can plant managers do to facilitate integration?
Research Model
• Starting point: Pagell 2004
• Modified to enhance generalizability
• Combined with findings of St.John et al 2001, Vickery et al 2003
Outcome Variable: Integration
• Definition: – A process of interaction and collaboration in
which manufacturing, purchasing and logistics work together in a cooperative manner to arrive at mutually acceptable outcomes for their organization (Pagell 2004)
Outcome Variable: Integration
• Shared Goals– the extent to which the manager of each focal function
(purchasing, operations, logistics) is familiar with the strategic goals of each of the other two focal functions
• Cooperation– the frequency of requests from other focal functions that
are fulfilled by the members of each focal function
• Collaboration– is the frequency at which a member of a focal function
actively works on issues with members from the other focal functions
Management Support
• Management sets the tone for the organization
• Three dimensions– Individual vs. Collective – Normative vs. Facilitative – Strategic vs. Tactical
Structure
• The structure of the firm determines the balance between differentiation and integration:– Span of control– Levels of authority
Human Resource Management
• Job rotation programs
• Cross-functional teams
• Measurement/Rewards– Departmental vs. Firm Goals
Communication
• Formal– Frequency– Content
• Informal– Frequency– Content– Mode (personal, email, telephone)
Information Systems
• Facilitators of data and information transfer (St.John et al 2001)
• Precursor to supply chain integration (Vickery et al 2003)
• Computerized production systems – MRP, MRPII
• Integrated information systems– Enterprise systems (ERP) or interfaced
function-specific systems
Research ModelManagement Support
Structure
HR Strategy:Measurement—RewardsJob RotationCross-functional Teams
CommunicationFormalInformal
Information Technology
INTERNAL INTEGRATION
Research Hypotheses
• H1: Management Support has a direct effect on plant Structure.
• H2: Management Support has a direct effect on HR Strategies
• H3: Management Support has an indirect effect on Internal Integration.
• H4: Structure has a direct effect on Communication.
Research Hypotheses
• H5: HR Strategies has a direct effect on Communication
• H6: HR Strategies has a direct effect on Internal Integration
• H7: Information Technology has a direct effect on Communication
• H8: IT has a direct effect on Internal Integration• H9: Communication has a direct effect on Internal
Integration
Methodology
• Cross-sectional survey– Web-, e-mail, mail-, and phone-based
• Domain: Manufacturing plants in the US
• Target respondents– Managers of Purchasing, Operations, and
Logistics departments– 1-3 respondents per firm
Contributions: Academic
• Contribute to theory-building in Supply Chain Management
• Empirical tests of proposed models
• Initial look at managerial levers